Italy must focus on reviving its economy and it will lobby its European partners to obtain more growth-oriented policies at the EU level, new Prime Minister Enrico Letta said in his maiden speech to parliament on Monday.

There are still good reasons for countries to join the euro zone, despite its difficulties at the moment, European Central Bank Executive Board member Joerg Asmussen said on Monday. Emerging economies in eastern Europe are among potential candidates to join the single currency.

Italy's ten-year borrowing costs fell on Monday to the lowest point since October 2010 after the country's new prime minister named his cabinet over the weekend, ending two months of political deadlock in Italy.

Confidence in the euro zone's economy fell for a second straight month in April and by more than expected, data showed on Monday, strengthening the case for a cut in interest rates this week. Likely of most concern, the pessimism has set in even in Germany, Europe's biggest economy.

Falling commodity prices coupled with China's structural slowdown will help create a new generation of emerging market "growth stars" across Europe and Asia, according to economists at independent research firm Capital Economics.

Greek lawmakers on Sunday approved a reform law to unlock about 8.8 billion euros of rescue loans from the EU and the IMF. The legislation makes it easier to fire government employees for disciplinary reasons and extends an unpopular property tax.